Lol, I know the feeling … was buying the dip a bit too early myself.
Alice in Optionsland
- Thread starter qlai
- Start date
Quite frustrated with myself. Was looking to sell $925 put expiring this week (TSLA hit low of $928 today) but didn't pull the trigger - was waiting for a bit more "panicky" move. May not get another opportunity till the end of the year. Very good chance my $990 put will become OTM and start loosing lots of value fast.
Well, that is a very merry X-mas for you. You made good bank on the short leg. How much premia did you pay for that long put? Because at this point, the worst thing that can happen to you now is if your long put expires worthless, right? So the max loss you will suffer is locked in when you closed your short leg.
And that max loss is what you paid for the long leg. If it was less than 8K, you are locked-into profit! Those are awesome feelings, knowing you can no longer lose on a trade, and can only now gain if the winds are behind your sails.
There's a song for that feeling, of having an indestructible trade scenario...
Yes I am finally break even on the trade, assuming long leg expires worthless. That’s crazy … TSLA had incredible volatility and range and all I get is a break even trade!?
The only consolation is that I finally got that non-recourse leverage I’ve been dreaming about
https://www.elitetrader.com/et/threads/non-recourse-leverage.356915/
WOT?!? I thought you were in profit on the closing of the short leg? WTF you options guys...
Your long leg can go into profit before it expires? Don't say you have taken us on this TSLA journey just to get to breakeven!
Hardly an options guy. If I were to close the long leg now, I would be in profit (mark to market)
Think about it this way : I am holding 30DTE $990 TSLA put at zero cost - hence the lottery ticket.
You aren’t holding the 990 put at zero cost. You are holding it at the current market value. If you close it, you bank that much pnl. It’s not a free put.
Do you have the view tsla will fall? I personally don’t and I cut most of my position (which was synthetically short) on Tuesday.